MTM Disciplinαm Funds
MTM Disciplinαm Funds are Long Short Equity funds with positions that are unhedged and are only looking to create returns on both Long and Short investments. They are centered on a disciplined, innovative, fundamentally driven Knowledge Based Recommender System (KBRS). At their heart is a unique valuation formula which can be used across any country, sector or accounting practice. This valuation formula is used to exploit pricing anomalies between how the equity markets are valuing the company and how we value the company.
This mathematical formula is driven by using the consensus data from the financial models on companies generated by sell side analysts for their research products and therefore ensures that we are never standing against the market. We do not produce any research notes on the companies we invest in ourselves as we want an unbiased view on all of the companies within our investment universe.
MTM Disciplinαm Funds are designed around discipline. Everyday we run our investment process for all of the stocks that are listed in each funds geographic region. All stocks are included as we do not want to miss any investment opportunities because we do not like a certain company's management or think that a a country or sector is out of favour and we should ignore it.
Our only "human" overlay comes at the end of our investment process in our event risk check where we are looking for reasons to NOT initiate any investment idea that has been generated. The only way that this can be enforced is if it is for a glaringly obvious error. For example, data is corrupt, there has been breaking news out on that company or there is a more deep rooted event and in all cases the sell side analysts are not currently factoring this into their work. We can never override an investment idea due to our gut feelings, opinions or general dislike.
MTM Disciplinαm Funds are bottom up driven with no Macro overlay. Our Gross and Net exposures are purely driven by our investment process and the number of investment ideas that are generated by it subject, of course, to our strict risk parameters with regard to both exposure and concentration risk.